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← The Somerset And Dorset Railway Trust Ltd

2023-12-31-accounts

THE SOMERSET & DORSET RAILWAY TRUST LTD

(A company limited by guarantee)

REPORT & FINANCIAL STATEMENTS

Year ending 31st December 2023

Charity number 1158865

Company number 8945535

Registered address:

2 Victoria Grove, Bridport, Dorset DT6 3AA

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Report of the Directors for the year ending 31 December 2023

The Trustees are pleased to present their annual Directors’ report together with the consolidated financial statements of the charity and its trading subsidiary for the year ending 31 December 2023 which are also prepared to meet the requirements for a Directors’ report and accounts for Companies Act purposes.

The report of the directors has been prepared taking advantage of the small companies’ exemption of section 415A of the Companies Act 2006.

Chairman’s review

This Report coincides with the end of our tenure at Washford. When the Trust was given Notice to Quit the site in February 2020, a terrifying prospect faced your board of trustees. Where would we go? What would be the prospects for the future? What financial effect would it have? These questions were gradually answered by the sheer dedication of many in our wonderful trust and with Trustees and volunteers coming up with the solutions. The last items of rolling stock departed during 2023 and finally, the two small diesel shunters were sold to new homes. The restored Fruit D is a classic example of how our partnership with other S&D organisations is proving a success. It is now providing a useful display space and audio-visual facility for visitors at Shillingstone.

In many ways we were fortunate in having our year-long notice to quit extended by three years due to the Covid crisis. We would have struggled to move our assets in time, and we would have been very vulnerable. Our Appeal to members to raise funds for the exit in mid-2020 was highly successful with £46,000 raised. It was clear that our trust had received a great deal of sympathy for our dilemma and these funds were able to cover the costs of transport and legal fees associated although I am pleased to report that we were able to offset many of the haulage costs in the deals we arranged.

The final problem to solve was the site at Washford itself and we decided in the Spring of 2023 to enter negotiations with the West Somerset Railway Heritage Trust. This was absolutely crucial because the site containing our main shed and layout of track, which had been accumulated over some 40 or more years, had to be either removed or sold. We did our sums, and the demolition of the site came out in tens of thousands of pounds and with the final clearing up of contamination, we were facing costs estimated at £100,000. We would have retained the track and points but with nowhere to store them; that would have been very costly in itself. We finally came to a financial deal with the WSRHT in January 2024 and they are now the residents at Washford.

With the financial deal at Washford and our general financial stability, we can now look to the future and begin to work on our strategy. Our 7F No. 53808 had its final runs in the autumn of 2023. Much background work has already begun on its next overhaul, and we will be looking at various options for its return to steam taking into account the commitment of the West Somerset Railway to participate with its financial obligations. Top of our list of objectives will be to give more dedication to our extensive artefact collection. Some items are on display with our two partners at Midsomer Norton and Shillingstone and we have some items also at Alresford. We will be exploring further displays to bring the S&D to many more people in the future and with our large collection of photographs, this will form a major aspect of the Trust in upcoming years. We have our two unrestored S&D coaches to put back into good order, hopefully with our new partners at the North Dorset Railway. Partnerships are certain to be a main focus in the future.

All of this has been accomplished by people – all volunteers and dedicated to the Trust. Our volunteers at Washford have been key to our exit from that site and I cannot thank enough those who did so much work, often in difficult conditions, to dismantle the contents of the shed, find alternative locations for our many tools

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and machinery and fill endless skips with rubbish. In all of this process we have assisted several other trusts; the SDRHT at Midsomer Norton, the NDR at Shillingstone, the Lynton and Barnstaple Railway, the Westonzoyland Light Railway, the Watercress Line, and others.

And so, we look forward to the future. Safeguarding our collections, keeping our locomotives operational, developing partnerships, and increasing our membership will protect the Trust for future generations to come.

My thanks go to the other Trustees and officers for their support and knowledge in the past year. I would finally like to thank Ian Young who was my predecessor and who took us through the first three years of the difficult exit period. Ian is one of the Trust’s longest-serving volunteers having taken on many of the management positions over the years.

Roger Hardingham (Chairman)

Purposes and activities

The charity’s objects are specifically restricted to the following:

As a result of the exceptional events in 2020 the Trustees refined their strategic vision:

In shaping its objectives for the year and planning its activities the Trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

In planning the programme for 2023, the Trustees paid particular attention to activities involving public benefit, primarily involving re-establishing museum displays to bring the “S&D Story” to the attention of a larger and wider audience. Details are incorporated into” Activities, Achievements and Performance” on page 4.

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To do this the Trust worked to attract, encourage, and support members and volunteers; secure financial resilience for the Trust; and build positive relationships and partnerships with related organisations. Trustees have continued to evolve the established organisational structure with clear accountabilities.

Members and volunteers

The Board continues working to strengthen the Trust’s volunteer management. Continued attention has been given to the Trust’s membership database as a resource to identify and nurture future volunteers, as the Trust is now operating over a wider geographical footprint than in recent years. Over the course of 2023 new volunteers have offered their services including with management, heritage, sales, and membership. During 2024 the Trust is looking for volunteers to assist in a variety of roles. The Trustees are already conscious of the need to supplement its existing heritage and conservation history volunteer base and sales and administrative support.

Activities, achievements, and performance

Locomotives:

53808 was in service at the Mid-Hants Railway fleet during 2023, with the boiler certificate expiring at the end of the year. It was used sparingly but was used for Galas, a Special Train swansong, and a final weekend in steam during November. The MHR hire agreement expired at the end of the boiler certificate, and the locomotive is currently in store at Ropley. Since it moved to the MHR in 2020 it has been in steam for 147 days clocking up over 9,000 miles in service.

The pre-existing 10-year operating agreement with the West Somerset Railway remained suspended until the boiler certificate expired with the Trust retaining the cash for steaming fees on the strict understanding that it be made available for the overhaul of the locomotive. The suspension agreement clarifies WSR’s requirement to provide overhaul funding which will reflect WSR’s usage since the previous overhaul. The original agreement remains in place and discussions have commenced with WSR regarding their contractual commitment to carry out the overhaul.

Kilmersdon returned to service in August 2022 after overhaul under a hire agreement with MHR for the locomotive to be based at Ropley for the period of its new boiler certificate. This provides for it to be used by MHR on a daily steaming fee basis, and to be available for hire by the Trust to other heritage railways. During 2023 the locomotive was steamed for 44 days, including 24 days as Percy for Thomas and Friends weeks. The locomotive was hired out to the Somerset & Dorset Joint Railway at Midsomer Norton for Halloween and Christmas events. The locomotive should be financially secure through the full term of the boiler certificate and the Trust will have funding for the 2032 overhaul.

Immediately prior to cessation of vehicle movements at Washford the two Diesel shunters were sold externally as they had become surplus to the Trust’s requirements. The ex-Bath Gas Works Ruston shunter was sold to the Vale of Berkeley Railway Preservation Trust at Sharpness, and the ex ROF Puriton Andrew Barclay shunter was sold to a group at the Leiston Works Railway in Suffolk.

Museum Collection and Collaboration Arrangements

During 2023 the Trust entered into a collaboration agreement with the North Dorset Railway at Shillingstone. This involved two vans, the two unrestored coaches and a number of museum artefacts transferring to Shillingstone. These items join the two wagons and the Binegar crane transferred in 2021.

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Towards the end of 2023 the Wells Hut was donated to the Somerset & Dorset Heritage Railway Trust at Midsomer Norton where it will be restored. The preexisting loan agreements from 2021 continue and the number of items loaned increased during 2023.

Arrangements at the Mid-Hants Railway have continued during the year with eight vans and wagons on long term loan arrangements, museum artefacts most of which have been displayed in the museum in Alresford Goods Shed. and the Burnham signal box now at Ropley. The museum is a joint venture with MHR with some MHR artefacts also on display and has been open most weekends the railway was operational. Discussions are underway about developing the museum displays at MHR.

Coach 4 was the last vehicle to leave Washford. Negotiations are being concluded for the coach to move on loan to a covered location where it will be available for the public to appreciate.

The Peat Railway exhibits remain at the Westonzoyland Pumping Museum on long term loan. The exhibits have been incorporated into the existing WZL displays and have been operational at recent WZPM open days.

During the year four wagons and a small number of non-S&D artefacts were sold externally. The signal box equipment configured to replicate Midford was loaned to the Tarka Railway project in Devon.

Washford

As a result of the notice to vacate Washford by West Somerset Railway plc in 2020, the Trust relinquished the station building in January 2022 and retained the right to remain at the Washford site until November 2023.

Great progress was made to vacate the site by that date and outline agreement had been reached with the new tenants of the site, West Somerset Railway Heritage Trust to sell them the workshop building, all the trackwork in the yard and the piece of land we owned adjacent to the A39. In mid-November it became clear that delays in negotiation between WSR plc and WSRHT would impact our sale agreement with WSRHT, and WSR plc granted the Trust a further 2-month lease extension to January 2024. (see post balance sheet event in Note 22)

The site has been closed to visitors throughout the year. The Washford volunteer team continued to meet weekly through until the end of November and cleared the site, including demolition of the accommodation block behind the Wells Hut, and supervision of a succession of low loaders removing rolling stock and artefacts from the site. The work put in by the Washford volunteers has been unstinting, dedicated and loyal hard work in challenging circumstances and the Trustees are deeply appreciative of their efforts.

A further shipping container was purchased and filled with larger museum artefacts including vintage S&D coach parts. A total of four containers were shipped off site in December, one to Shillingstone and three to a secure compound in Somerset.

Fund Raising

2023 has seen the return of a full year of Fund-Raising Events following Covid. The Model Railway Exhibition in January included a high-quality O Gauge layout of Bridgwater S&D modelled as it would have been in 1904 by member Trevor Gibson. This generated considerable local interest, which contributed to a higher-than-normal attendance of 450. The Special Train was again held at Mid Hants Railway in July, and 103 members and guests enjoyed a return journey on the MHR behind 53808, which was marketed as the pre overhaul swansong. The Annual Raffle raised £4,001 (net) for the “53808 Tender Tank” Appeal.

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Sales Income

A retail sales trading subsidiary, The Somerset & Dorset Railway Trading Co Ltd, was set up during 2022. (see notes 12 and 13 to the financial statements) and started trading on 1 July 2022. It is fully owned and controlled by the Trust and its Trustees serve as directors of the trading company.

In March 2023 Nigel Davies, the Sales Manager, had a stroke and was unable to continue with his sales activities. David Grimwood, a former Trustee, stepped into the breach at short notice. There have been a number of enforced changes because of the change in personnel. The end of Covid restrictions has seen a continued reduction in online sales, and this has not been made up by sales from other sources.

During the year, the Trust introduced Dapol produced exclusive limited runs both in “O” and “OO” gauge of a wagon in the livery of “Pylle Blue Lias Lime & Selinitic Cement Works”. Just before the end of the year the Trust took delivery of a further 4 Dapol wagons in both “O” and “OO” gauge which were launched in early January 2024. This led to a much higher than normal stockholding at the end of the year.

Further editions of three Trust “blue books” were delivered in the year – “Swift & Delightful”, “Southbound with the Pines Express”, “53808 A S&D Engine”. These continue to sell steadily. One of the Trust’s book suppliers, Strathwood Press offered Trust members a discount of 10% which applies to their complete range, and furthermore pay a continuing monthly commission to the Trust (25%) relating to all books sold to members.

Video & Photographic Collection

Progress has continued in digitising and cataloguing the Trust’s photographic collection, including the recently acquired G A Richardson collection. The number of images available for purchase via the website is now nearly 1,350. Over 100 images were provided for the “Pictorial Atlas of the S&DJR” which boosted collection income.

Volunteer Management

Communications to members Identification of volunteers to assist with moving to and operating at its new museum sites has been a priority. Appeals at the AGM and in the “Pines Express” for volunteers to step forward in a variety of roles have had only limited response. Individual approaches to members able to take on specific roles has been more fruitful (see page 7).

Communications and Website

Communications to members have continued via the website, Facebook, and newsletters in addition to the quarterly “Pines Express” which continues to be successful and is highly respected in the heritage railway community. A continuing flow of interesting articles and member research has enabled the 44-page size to be maintained throughout the year.

Funding and Appeals

The “Progressing Our Future” Appeal was closed formally in 2021. Member donations have continued to be generous. Trustees are immensely grateful to all members and well-wishers who have donated to the Trust and continue to do so. Fundraising plans for the overhaul of 53808 have been considered, and dependent upon discussions with West Somerset Railway, will be implemented as appropriate without delay.

Legacy income reverted to more normal level (£5,941) following the receipt in 2022 of two larger legacies from the estates of former members, totalling £126,103. Similarly to other legacies received in recent years this cash has been designated for future use on appropriate project(s).

Until the Trust’s liabilities arising from vacating Washford were known in full, expenditure on coach restoration and any project expenditure with collaboration partners had been deferred until 2024.

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Meetings

It was again possible to hold a physical Annual General Meeting with a Zoom attendance option on 22 April. This was attended by 23 members in person and 17 members via Zoom. The Trustees met by Zoom video conference on ten occasions.

Membership

Subscriptions which had not increased by many years were increased at the beginning of 2023. Membership of the Trust has reduced slightly, with 718 members at the end of the year. There were 45 new memberships in the year.

Resilience--

Despite the heavy workload of moving the collection and vacating Washford, Trustees have continued work on the structure and governance of the Trust. It has highlighted the need to ensure succession planning, and to encourage officers and Trustees with appropriate skills to step forward so that the Trust can prosper in the future, taking account of the increased locomotive activity and the challenges of working on multiple sites with no designated central base.

Governance

On 1 September, the registered office was moved from Washford to 2 Victoria Grove, Bridport. Trustees are grateful to Bruce Kenway, the independent examiner, for making his business premises available to act as the registered office,

Organisation structure

The Trust adopted an organisation structure which is reviewed regularly. In 2023 it has evolved to encompass new and revised roles which are and will be required because of revised methods of operating. During 2023 there were notable departures. In March Nigel Davies stepped down as Sales Manager but remains as a Trustee in a non-executive capacity. In July Ian Young resigned as Chairman and Trustee after very many years of service on the Committee and more recently as a Trustee and since 2018 Chairman. This was followed in late September by the news of the sudden, and unexpected death of Ian’s son Andy, who was the Trust’s Membership Secretary.

2023 has also marked the end of volunteering at Washford where a small team has faithfully turned up every week in all weathers for over 40 years. Whilst some of the latest volunteers had multiple roles within the Trust which will continue, there are several volunteers who, consequently, have ceased active involvement.

Roger Hardingham was elected Chairman in July, Rob Bentley was elected as a Trustee at the AGM and has taken on the heritage portfolio, David Grimwood stepped in as Interim Sales Manager, and Tim Deacon became Membership Secretary in November.

With the impending retirement of some of our existing volunteers, there is an ongoing and pressing need to recruit volunteers to provide support in managing our extensive collection, and in the fund raising, administrative, sales fund raising and financial areas. Trustees continue to welcome offers to volunteer from members and others to assist the Trust in whatever way they can.

Current board responsibilities are shown on page 9.

Financial review

There was a net inflow of £42,651 resulting from income from the sale of assets, donations, locomotive hire fees, net sales income, and heightened levels of interest income. Of the closing unrestricted funds balance, £68,798 is

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in the General fund with the remainder designated (see note 20 for details). Restricted funds reduced from £32,592 to £17,095 due to preplanned expenditure on exiting Washford.

Closing cash and deposit balances were still unusually high due to the exceptional income in 2022 and 2023 although it anticipated that this will reduce significantly over the next 18 months. It remains policy to invest funds at United Trust Bank and CCLA and to add a further provider specialising in charity finance suitable for the Trust’s needs, At December 31 2023, £85,000 was held at CCLA in a no notice deposit, and £81,643 was held at United Trust Bank in two 12 month charity bonds maturing in June 2024 and December 2024 earning interest at a fixed rate of 4.41% and 5.00% respectively.

In 2016, the Trustees determined that a minimum of 4 months of unrestricted general expenditure should be held in reserves. At the end of 2023, this threshold was comfortably exceeded. It is anticipated that the future position will exceed the 4-month threshold.

The Trustees have concluded from their review of financial activities and forward expenditure requirements that the charity is a going concern and accounts have been prepared on this basis. Review of financial performance is an important agenda item at Trustees’ meetings.

Plans for future periods

Plans for 2024 include:

Strategy

Trustees will commence discussions on the future strategy of the Trust early in the year and the overdue Strategy Review, including member consultation, will be prepared, and published, It will form the basis of decision making going forward,

Locomotives

Trustees will continue discussions with the West Somerset Railway regarding 53808 in line with contractual stipulations. Until these are finalised no decision can be made as to the timing and scope of the ten yearly overhaul, which is due following the expiry of the boiler certificate at the end of 2023.

Kilmersdon will continue to play its part at the Mid-Hants Railway, particularly during Thomas events. There will be opportunity to conclude further appropriate external hiring arrangements.

Coaches

Trustees will conclude arrangements to rehouse Coach 4 at a location where it can be appreciated by the public and under cover. Decisions on the future of the two unrestored coaches, currently at Shillingstone, will be informed by the strategy review.

Museum Collection and Collaboration Arrangements

Now that the collection has all moved from Washford, work will continue with our partners at the Mid-Hants Railway at Alresford, the North Dorset Railway at Shillingstone and the Somerset & Dorset Heritage Railway Trust at Midsomer Norton to ensure appropriate and regularly refreshed displays, the attendant security arrangements and to explore further cooperation to be developed in a manner that benefits all parties.

Work will commence on a comprehensive audit of all artefacts in the collection to ensure our records are full and complete and to optimise the storage of items not currently on display.

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Washford

Trustees will conclude work on the agreement with West Somerset Railway Heritage Trust. to sell them the workshop building, trackwork in the yard and land in order to fully vacate the site by 31 January 2024. (see post balance sheet events in Note 22)

Fund Raising and Sales Income

The Model Railway Exhibition was held in January 2024, and the Annual Raffle will generate funds to go towards the overhaul of 53808. The 200+ Club will continue to generate funds for the Trust.

Opportunities at MHR and elsewhere to have a sales stall and other fundraising will be taken up.

The Trading Company will continue to create Retail Sales opportunities online by careful introductions of further of its own publications and limited-edition model wagons.

Volunteer Management

There is a requirement for additional assistance in a number of areas. Trustees will pursue a programme of identifying and recruiting volunteers to assist at its new sites, and to supplement our current volunteers working in administration and fund raising, finance, museum, and curatorial positions.

Work will continue to strengthen the resilience of the Trust and to ensure an appropriate range of skills and interests is represented in the management of the Trust.

Communications and Website

Communications to members and the wider heritage railway movement remain vital. Attention will be given to keeping members informed by email, newsletters and in the “Pines Express”.

Photographic Collection and Digitisation of records

The digitisation and availability of the Trust’s photo library will continue to be worked on. Opportunities to add to the Trust’s collection of unique images will be pursued carefully.

Resilience and Governance

Trustees will continue their work on the structure and governance of the Trust. Future resilience will involve Trustees taking full account of new working arrangements and the challenges of working on multiple sites.

Funding and Appeals

A small fundraising group will coordinate future funding requirements to be identified in the Strategic Review and to consider the optimal means of raising funds for projects in the short to medium term such as assuring the future of locomotive 53808, coach restoration and project expenditure with collaboration partners.

Administrative details

The Directors of the charitable company (the charity) are its Trustees for the purpose of charity law. The Trustees and principal officers serving during the year and since the year end, together with the portfolios currently held are:

Directors and Trustees I M Young Chairman (to 14 July 2023) (resigned as director 14 July 2023) Chairman (to 14 July 2023) (resigned as director 14 July 2023)
R C Hardingham Chairman (from 15 July 2023) Locomotives, Rolling Stock
R Bentley (elected 22 April 2023) Heritage
A N Davies
R D W Ormston Communications
M J Rice (resigned 1 February 2023)
M Stanistreet Health & Safety; Washford Exit

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Principal Officers M Stanistreet Health & Safety Officer
R D W Ormston Magazine Editor
A J M Young (to 25 September 2023) Membership Secretary
T Deacon (from 1 November 2023) Membership Secretary
S R Gillett Museum Collections Assistant
D Temple Museum Displays Coordinator
M J Rice Treasurer
E L Lambe (to 5 December 2023) Washford Team Leader
Advisers Martin & Co Bridport
HSBC Bank plc Yeovil
Nantes Weymouth
Company number 8945535
Charity number 1158865
Registered Office 2 Victoria Grove, Bridport, Dorset DT6 3AA

Structure, Governance and Management

Governing Document

The Somerset & Dorset Railway Trust Ltd is a company limited by guarantee governed by its Memorandum and Articles of Association dated 14 August 2014. It is registered with the Charity Commission. Existing members of the Somerset & Dorset Railway Trust transferred to the present Trust when the charities were listed on the Register of Mergers on 4 March 2015. New members apply for membership. In the event of the charity’s dissolution, members resolve that any net assets will be passed directly for the objects, or any charity for purposes similar to the objects or to any charity for use for particular purposes that fall within the objects. Members are liable up to £10 per member for any debts remaining after dissolution.

Appointment of Trustees

As set out in the Articles of Association the Chairman of Trustees is appointed by the Trustees. Trustees are elected in rotation for three years by members either in person at the AGM or by proxy vote. The Trustees have the power to coopt Trustees who stand until the following AGM.

All members are circulated with invitations to nominate Trustees prior to the AGM advising them of the retiring Trustees and requesting nominations for the AGM. When considering appointing Trustees, the Board has regard to the requirement for any specialist skills needed.

Trustee induction and training

New Trustees are briefed on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and informed of the content of the Memorandum and Articles of Association, the Board of Trustees and decision-making processes, the business plan and recent financial performance of the charity. Trustees attend appropriate external training events where these will facilitate the undertaking of their role.

Organisation

The Board of Trustees administers the charity. To facilitate effective operations, the Board has authority to delegate certain operational matters to working groups and volunteer officers. The Board meets either face to face with a Zoom online attendance option, or online via Zoom. Other officers attend Board meetings as required.

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Related parties and co-operation with other organisations

None of the Trustees receive remuneration or other benefit from their work with the charity. Any connection between a Trustee or senior officer of the charity with a related party must be disclosed to the full Board of Trustees in the same way as any other contractual relationship with a related party. Details of related party transactions are disclosed in note 21 to the accounts. In accordance with Trust policy Trustees withdraw from decisions where conflicts of interest arise.

Risk management

The Trust has identified a number of risks which are more numerous than has been the case in past years. Trustees address these risks regularly and ensure that adequate monitoring and mitigation is in place to deal with them.

Short term heightened level of risk:

Medium term risk:

Impact of macro risks on Trust:

Other risks are addressed by maintaining risk assessments of Trust activities, contingency planning where appropriate, emphasis of safe working practices and the development of, maintenance of, adherence to and monitoring of robust policies.

Trustees’ responsibilities in relation to the financial statements

The charity Trustees (who are also Directors of The Somerset & Dorset Railway Trust Ltd for the purposes of company law) are responsible for preparing a Trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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Company law require5 the chaty Truslee5 to prepare fin￿aal ststements for eath ￿ar which give a tR5e and fair view of the state of affaiFS of the thai¥taL4e corytrpany and of tl inCLxning re￿￿r(eS and apP￿"(alK)n of resrAJrces itKluding income atKI expendityre. of the dw¥¥ty for the Pe￿￿. In PTepating the firlanaal statements, the Trustees are requir to.. Select suitsWe accthJnbNJ pJioes them Consi￿dy. Obtve the and principles in ts Cha¥ilies SORP. Make judgements and estimates that a￿ r&)sonable a￿1 prudenL State whèther apploble UK Sts¥Mlattls W beetE gJbJ"ert to ary material departures disclosed aThJ expl•ned in the finatKia gatemen Prepare the finanoal statèmeftts on the goiThJ COn￿M basis unless tt is inapwopriate to presume that the ch3I7ty wdl continue in tw9 The Tn55tees ale ￿sponsible for keeping [￿oPer accovntirwj records thal disdose vrith Teasonable accurary at any time the financial KX)s￿On of thartty and to ènabEe them to that the finonoal ststements comply the Companies Art 21Th. They are akn re¥K)nsiNe for safeguardiThJ the assets of the dwTity atKI heoce tsking rea%)nable steps for the prevention and dete£tion of fraud and other iFre9ulari The Trusees are responsible for the maintenance ￿K1 integnty of the COTFofdte and financial infom)ètl￿I I￿l￿ded on the charitls websit& Legi￿atiOn in the Unite(l ￿l¥Jd0M gov￿rNI￿j the prqwatton dtssemination of fin￿Cial Statements may diffwfrom legislation in other JUr￿J1(tIOn￿ Statemw)t as dbsckwre to iWKleFrndart eyami In so far as theTFUStets awe aware at the time of3pp￿￿wj Twstees. ￿tyjaI rep(wtr. There is no ￿￿￿nt inf(Mmatw infonnatKM) needÈd lry Inde￿¥lent eXaMi￿r in cvnnethon wth preparing their rew)¢ of whth the independent exami￿ is unaware. and. The Trustees, ha￿￿9 made er￿Ul11e5 of felLW Directo￿ aThl the independent examirw that thry ought to have individually taken, have each tsken all steps that helshe ￿ obh.ged to take as a Director it) order to make themselves aware of any relevant information arKI to eSts￿l5h that the tTh4ewdent eK2miner ts aware of that informatiorL y ordw ol the Board of Trustees R HardIngha￿ (Chairman) 14 March 2024

INDEPEIYDENT EXAMINER'S REPORT -1 o the Trustces of The Somerset & Do￿1 Railway Tru￿ Ltd on th¢ accounts for the year cnded 31 st De¥¢mber ?023. This rcport is made solely to the charitv's Trustees. M) examinaiion work has been undetlaken so that I nTr]￿l stale to the charity"'.s trustees those matters l am requircd to stste to them in an examiners rcw)rt and for no other purpose. To thc fullest ¢xtent pemiitted bv laii. I do not accepi or assutne responsibilit), to an}'one other than the ¢harity and the charity"s trusiees as a b￿y. for my worl for this repory or for the opinions I have fom)ed. Respeclive responsibilities of Society, Board Members and the examiner As the charity" s tnistees of. the Company (and also its directors for the purpos¢s of companj law) you are rcsponsiblc for the preparation of the a¢Lounts in ac¢ordan¢e with th¢ requirements of the Companies Act 2006 {thc 2006 Act). Having satisfied myself thai ihe accounls of the Companv a￿ not required to be audited under Part 16 of the 2006 Act and arc eligible for independent cxamination. I rcport in respect of my examination of)wour charity s accounts as carried out under section 145 of thc Chariti¢s Act ?0 I l (Ihe ?022 Act). In caming out my examination. I have folloi¥ed the Diredions given b). Ihe Charit), Cowntnission under section 145{5)(b) of the 201 l A¢t. Basis of independent Examiner's $tatement An examination includes a revieiv of the accountino records kept by the Company. and a Comparisoii of the accounis p￿sented with those records. It also iiicludes considerdtion of anv unusual items or disclosures in the accounts. and sceking explanations from th¢ Board MeTnbers ¢oncerning any such malters. 'l-he procedures undertaken do not pro￿]de all the evidence that ￿OUld bc required in an audit, aiid coiis¢quently I do not express an audil opinion on the ac¢vunts. Independent examiuer's statement In the course of my cxamination. no matter has COTne to my attention hich gives mc reasonable caus¢ iu IKlieve thal in anv material rcspecL the Board Metnbers hav¢ not mct the rcquiremenls to ensure that = proper a¢Lounting r￿ordS are kcpt ac¢ounts are prepared which aore¢ with the accounting rccords and complv with generally accepted a¢¢ounting requiremenis: or b) to which, in my opiniott. attenlion should be drdwn in order lo enable a proper understanding of the accounts to be reAched. Signed Date I Ith MaTch 2024 Name Bruce eginald Ke Chartered Certified Accountant Address 2, VICTORA GROVE. BRIDPORT, tX)RSET, DT6 3AA

THE SOMERSET & DORSET RAILWAY TRUST LTD

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

for year ending 31st December 2023

Notes
INCOMING RESOURCES
Subscriptions
Donations and grants
3
Charitable activities
4
Other activities
5
Investment income
6
Total incoming resources
RESOURCES EXPENDED
Expenditure on charitable activities
7
Cost of generating funds
8
Governance and support costs
9
Total resources expended
Transfers between funds
Accumulated fund brought forward
20
Accumulated fund carried forward
20
Net incoming resources for the year
before transfers
Net incoming resources for the year		 2023
2023
2023
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
18,799
-
18,799
13,671
932
14,603
5,635
5,292
10,927
43,697
-
43,697
6,808
-
6,808
88,610
6,224
94,834
24,302
17,311
41,613
2,585
1,291
3,876
3,574
3,120
6,694
30,461
21,722
52,183
58,149
(15,498)
42,651
0
0
0
58,149
(15,498)
42,651
265,822
32,593
298,415
323,971
17,095
341,066		 2022
Total
Funds
£
12,880
140,370
10,504
35,587
1,731
201,071
40,490
1,957
4,836
47,283
153,788
0
153,788
144,627
298,415

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

14

THE SOMERSEf & Do￿£T RAILWAY TRUST LTD CONSOUDATED BALANCE SHEETS as at 31st December 2023 15.T26 15.T26 101 Inv¢styn¥its 1114 101 15 16 17 147 4.617 31.042 166.633 164.615 128.600 104,123 166,633 164,e45 128.600 11)4,123 Barth & (¥shin LESS 18 19 319￿11 282 329809 znB31 15 341 323￿1 2&5.V23 17,119S 32U51 261. f7m4 32,593 341 .415 341 293.5 The notes at pages 16 to 21 ffrfm part olthwatc(xJnt5 (xnpanie5 regime. 2(X)6 rdair¥J to 5rn•4 com￿nI DiTectors' ¥eskyM%L¥lroe The members not reqwred the c(ryany to obtain ofits ￿¢￿j￿ts frxthe yearin in actordate ￿1th on47& Signed on behalf of the board of di￿0 R Hard1￿h3rn. Chairn￿n 14 March 2024 15

THE SOMERSET & DORSET RAILWAY TRUST LTD

NOTES ON THE ACCOUNTS

1. Accounting Policies

a. General information and basis of preparation The Somerset & Dorset Railway Trust Ltd is a company limited by guarantee incorporated in England within the United Kingdom. The address of the registered office is given in the company information on page 9 of these financial statements. The financial statements are presented in sterling which is the functional currency of the company. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

16

Asset Category Annual Rate
Land Nil
Buildings & Trackwork 10%
Rolling Stock 5 %
Engineering Equipment 10%
Office & Other Equipment 10 – 20%

Steam locomotives owned by the charity are not capitalised and details by individual asset are found at Note 11.

2. Legal Status of the Charity

The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is restricted to a maximum of £10 per Trustee.

3. Income from donations and grants

Notes
General donations
20
Grants and specific donations
20
Gift Aid
20
Legacies
20		 2023
2023
2023
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
3,474
-
3,474
-
40
40
4,256
892
5,148
5,941
-
5,941
13,671
932
14,603		 2022
Total
Funds
£
6,198
6,000
2,069
126,103
140,370

Details of the income into specific restricted funds can be found in Note 20.

The charity benefits from the involvement and enthusiastic support of its many volunteers, details of which are given in the annual report. In accordance with accounting standards, the economic contribution of volunteers is not measured in the accounts.

4. Income from charitable activities

me from charitable activities
Notes
Raffle
20
Model railway display
Special train
20
Other events
S&D 200 Club		 2023
2023
2023
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
-
5,292
5,292
3,093
-
3,093
1,110
-
1,110
54
-
54
1,378
-
1,378
5,635
5,292
10,927		 2022
Total
Funds
£
5,331
1,614
1,831
30
1,698
10,504

17

5. Income from other activities

Notes
Retail Sales
Less : Cost of Sales:
Stock 1 January
Add: Purchases
Less: Stock 31 December
Gross Profit
Less: Post, packing and sundry costs
Retail sales contribution
Photo collection income
Loco hire and other income
11, 20		 2023
2023
2023
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
17,700 -
17,700
4,844 -
4,844
16,905 -
16,905
(13,141) -
(13,141)
8,608 -
8,608
9,092 -
9,092
2,440 -
2,440
6,652 -
6,652
1,373 -
1,373
35,672 -
35,672
43,697 -
43,697		 2022
Total
Funds
£
24,265
3,782
15,224
(4,844)
14,162
10,103
3,009
7,093
272
28,221
35,587

6. Investment income

All investment income arises from money held in interest bearing deposit accounts.

7. Expenditure on charitable activities

Notes
Magazines
Insurance
Museum electricity
Museum rent, water, phone etc.
Museum safety and security
Museum maintenance
Shed, track, equipment maintenance
Washford relocation costs
Locomotive maintenance
Locomotive overhaul
Carriage maintenance
Wagons maintenance
Website, publicity, other events
17
Museum purchase
10
Museum displays and administration
Depreciation
11		 2023
2023
2023
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
9,742 -
9,742
6,078 -
6,078
2,681 -
2,681
1,313 -
1,313
-
-
-
-
-
-
-
-
-
-
17,311
17,311
35 -
35
-
-
-
275 -
275
-
-
-
1,284 -
1,284
-
-
-
854 -
854
2,040 -
2,040
24,302
17,311
41,613		 2022
Total Funds
£
10,043
5,416
470
1,172
696
347
400
2,736
(1,013)
14,869
10
244
1,596
1,000
477
2,028
40,490

8. Cost of generating funds

Cost of generating funds -
- Raffle
20
- Model Railway Display		 2023
2023
2023
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
-
1,291
1,291
2,585 -
2,585
2,585
1,291
3,876		 2022
Total Funds
£
1,313
644
1,957

18

9. Governance and support costs

AGM and board meetings
HRA subs, travel, stationery, postage
Trustees' travel expenses
Legal and Professional fees
20
Volunteer Management expenses
Membership administration
Examiner's fee and expenses		 2023
2023
2023
Unrestricted
Funds
Restricted
Funds
Total Funds
£
£
£
1,100 -
1,100
1,147 -
1,147
125 -
125
-
3,120
3,120
140 -
140
667 -
667
395 -
395
3,574
3,120
6,694		 2022
Total Funds
£
992
526
673
1,313
-
968
365
4,836

The charity has no paid employees (2022: None).

The charity Trustees were not paid nor received any other benefits from the charity (2022: None). No Trustees were reimbursed expenses in attending Trustees’ meetings (2022: None) in accordance with procedures laid down by the Trustees. No charity Trustee received payment for professional or other services supplied to the charity (2022: None)

10. Heritage assets

In 1988 all items then classified as museum items were written off as an expense to comply with museum regulations prevailing at that time. This amounted to £2,940 historical cost, £2,581 net book value. Since then, the cost of additional museum items has been written off as an expense against income when incurred, totalling £21,800 to the end of 2023. No asset value is carried in the accounts for heritage assets held by the charity, whether obtained by purchase or donation.

The charity’s collection of museum exhibits also includes donated items. The charity has a museum collection acquisitions and disposals policy, adopted by the Trustees in July 2015 and updated in March 2022. Detailed records of the collection are kept.

11. Tangible fixed assets – company only

`
Cost
Brought forward
Additions in the year
Transfer to Current assets
Disposals in the year
Carried forward
Depreciation
Brought forward
Transfer to Current assets
Disposals in the year
Charge for the year
Carried forward
Net Book Value
31st December 2022
31st December 2023		 Totals
£
136,094
3,144
(89,174)
(13,849)
36,215
120,367
(84,557)
(13,089)
2,040
24,761
15,727		 Buildings,
Rolling
Engineering
Office
Land &
stock
equipment
& other
Trackwork
equipment
£
£
£
£
98,457
13,185
5,227
19,226
2,250 -
-
894
(86,562) -
(692)
(1,920)
(4,710)
(1,900)
(4,535)
(2,704)
9,435
11,285 -
15,496
88,527
10,925
5,227
15,689
(83,097) -
(692)
(768)
(4,710)
(1,140)
(4,535)
(2,704)
944
100 -
996
1,663
9,885 -
13,213
9,930
2,260 -
3,537
11,454 7,772
1,400 -
2,282

19

The charity owns two steam locomotives. Both locomotives are operational and do not qualify to be treated as heritage assets.

Locomotive 53808 had a book cost of £42,635 in 1988 when it was written out of the accounts, along with the heritage assets. It is subject to a long-term hire agreement with West Somerset Railway plc whereby the hirer is responsible for all maintenance and overhaul costs. The current agreement expires on 30 April 2030. In 2020 the West Somerset Railway agreed to suspend the agreement for a period up until the boiler certificate ran out in December 2023. The Trust entered into a short-term agreement with Mid-Hants Railway Ltd to hire the locomotive for this period and has been responsible for invoicing and collecting steaming fees from Mid-Hants Railway. In 2023 income includes £8,078 in respect of hiring fees for 53808 (see note 5) (2021: £24,440).

Locomotive ‘Kilmersdon’ was acquired in 2010 at nil cost after many years on loan. Since then, it has been overhauled twice in 2012 and 2022, These costs and minor costs since then have been treated as an expense. In 2023 income includes £9,379 in respect of hiring fees for Kilmersdon (see note 5) (2022: £3,000).

12. Investments

The charity holds 5,150 shares in West Somerset Railway plc which were donated in previous years. These shares are considered to have no marketable value.

The charity owns 100% of the issued share capital of The Somerset & Dorset Railway Trading Company Ltd, a company set up in 2022 and which commenced activities in July 2022. See Note 13 for further details. -

External Investment
Investment in group undertaking		 2023
2022
£
£
1
1
-
-
1
1
Group		 2023
2022
£
£
1
1
100
100
Parent Charity
101
101

13. Subsidiary undertakings

The Somerset & Dorset Railway Trading Co Ltd is the wholly owned trading subsidiary of the charity. The trading subsidiary was incorporated on 19 May 2022, and retail stock was transferred on 1 July 2022 from which date the subsidiary commenced trading. The subsidiary operates the sales activities of the charity. A summary of the subsidiary’s financial statements from inception is set out below:

nts from inception is set out below:
2023 2022
£ £
Retail Sales 19,073 14,274
Cost of sales (8,608) (8,405)
Gross profit 10,465 5,869
Administrative expenses (1,850) (1,112)
Profit for the financial year 8,615 4,757
Changes in equity:
Total comprehensive income for the year 8,615 4,757
Gift aided donation to parent charity (13,350) -
Retained profit carried forward (4,735) 4,757

20

14. Parent charity

The parent charity’s results are:

ults are:
2023 2022
£ £
Gross income 99,571 196,315
Net incoming resources for the year 52,185 47,285

15. Stock

Retail Stock
Locomotive consumables stock		 2023
2022
£
£
13,141
4,844
5,607 -
18,748
4,844
Group		 2023
2022
£
£
-
-
5,607 -
Parent Charity
5,607 -

16. Assets for sale – charity only

At 31 December 2023 certain fixed assets relating to the Washford site were transferred to current assets as provisional agreement had been reached to sell them to a third party (see page 5 and Note 22).

17. Debtors

Prepaid website costs
Prepaid insurance
Other prepaid expenses
Group balances
Other taxes recoverable
Accrued income		 2023
2022
£
£
154
771
7,299
6,950
1,356
1,118
-
-
9,582
11,048
12,651
6,803
31,042
26,690
Group		 2023
2022
£
£
154
771
7,299
6,950
1,356
1,118
13,019 -
9,582
11,048
12,651
6,803
Parent Charity
44,061
26,690

18. Creditors: amounts falling due within one year

Creditors
Group balances
Accruals		 2023
2022
£
£
7,286
5,957
-
-
3,041
2,619
10,327
8,576
Group		 2023
2022
£
£
7,286
5,957
-
13
3,041
2,619
Parent Charity
10,327
8,589

19. Deferred income – charity only

Deferred income comprises subscriptions received in advance for future years.

21

20. Analysis of group charitable funds

Movements in restricted funds

ements in restricted funds
Restricted Funds
Museum Collection
Coach Restoration
Progressing Our Future Appeal
53808 Tender Tank Appeal
Total Restricted Funds		 Opening
Incoming
Resources
Transfers
Closing
Balance
Resources
Expended
in year
Balance
01/01/2023
31/12/2023
£
£
£
£
£
620 -
(620) -
-
3,727 -
-
-
3,727
23,780 -
(19,811) -
3,969
4,466
6,224
(1,291) -
9,398
32,592
6,224
(21,721) -
17,095

Movements in unrestricted funds

Unrestricted Funds
General Fund
Designated Funds:
Coach Restoration (including coaches 98/114)
53808 Overhaul
Kilmersdon Overhaul
Legacies
Baker Memorial
Exit from Washford
53808 Tender Tank
Total Unrestricted Funds		 Opening
Incoming
Resources
Transfers
Closing
Balance
Resources
Expended
in year
Balance
01/01/2023
31/12/2023
£
£
£
£
£
35,158
77,453
(43,813) -
68,798
12,628 -
-
-
12,628
67,010
8,078 -
-
75,088
(401)
9,379 -
-
8,978
141,049
5,941 -
-
146,990
404 -
-
-
404
8,143 -
-
-
8,143
1,831
1,110 -
-
2,941
265,823
101,961
(43,813) -
323,971

22

now due following the expiry of the 10-year boiler ticket in December 2023. Fees designated in 2023 amount to £8,078 (2022: £24,440).

21. Related party transaction

Mr Roger Hardingham is the owner of South West Publications Ltd, a supplier of Kingfisher railway books and DVDs. During 2023 the Trust and its subsidiary purchased goods to the value of £194 from and sold goods to the value of £229 to South West Publications Ltd (2022: £92 and £441 respectively). At 31 December 2023 £143 was owing to South West Publications Ltd (2022: £92), and £ Nil was owing to the Trust (2022: £441)

22. Post Balance Sheet event

The agreement with West Somerset Railway Heritage Trust. to sell them the workshop building, trackwork in the yard and land was finalised and signed on 30 January 2024 with effect from 1 February 2024.

Cover picture:

53808’s last day in service – 4 November 2023 On the high embarkment west of Four Marks village on the Mid-Hants Railway.

Photo by Rod Ormston

23